Life Insurance Settlements Overview
In the late 1980’s the first pre-death purchase of a life insurance policy for a terminally ill individual was consummated. A financial planner specializing in providing services for the terminally ill later coined the phrase “viatical settlement”. This term was intended to differentiate a third party transaction from other types of living benefits offered by insurance companies.
In 1996, this same process was applied to non-terminally ill seniors who were of normal health, but over the age of 65. Also known as Life Settlements, Elder Settlements, Lifetime Settlements and High Net Worth Transactions, the senior settlement strategy is gaining popularity in the financial planning community.
Today, it is estimated that over $1 billion in life insurance death benefits are sold annually.
Why would someone want to "sell" a life insurance policy?
Policies are sold for many and varying reasons. In some cases, the original purpose or need for the policy has changed or has diminished entirely.
Some circumstances include: Retirement, Affordability of Premiums, Change in estate size, Death of Beneficiary, Sale of a business, Financial Planning Changes, Insured wishes to distribute funds while living, Desire to invest funds, Policy has not met original illustrated values, Charitable Foundation holding policies, and other reasons.
What is meant by the "sale" of my policy?
A life insurance policy is an asset. Like other assets, such as real estate, stocks and bonds, a life insurance contract can be sold. All rights and obligations of the policy are transferred to a third party in exchange for a percentage of the contract’s face value. Upon death, the face value will be paid to the new owner.
Call us toll free at 1-888-973-8377 for a free policy evaluation to see the amount you can receive and if you qualify. You can also fill out our online form.
